Bond yields slid to their lowest since June 2003 as jittery investors fled from stocks on fears of a global slowdown and more write-downs at European banks.  International equity markets resumed their sell off as the positive jolt from the Federal Reserve's surprisingly bold 75 bpts rate cut faded.  Attention again has turned to worries about a U.S. recession and its global repercussions. 

When the Fed cuts 75 basis points, stocks are supposed to go up.  That is not happening.  There is a lot of dread out there.  Many are still betting the Fed cuts another 50 Bps next week with us ending up a 2.50% Federal Funds Rate come mid 2008 (currently 3.5%). 

I cannot stress enough that this market is very sensitive, so try not to float too long.  Be very wary of speculation on something better than what we have now. If the savings you see today are good, lock the rate for your home purchase or refinance transaction.